Inflation & Prices
Indonesia Core Inflation Sinks to Two-Year Low as Demand Falters
- High interest rates, stubborn unemployment undercut demand
- Easing food prices unlikely to prompt faster rate cuts
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Indonesia reported its slowest core inflation in the post-pandemic era as higher-for-longer interest rates take a toll on consumer demand.
Core inflation, which strips out the impact of volatile and government-subsidized items, stood at 1.8% in December due to cooling price gains in house rental costs, wages for household help, and gold jewelery, the statistics bureau said on Tuesday. It’s the 12th consecutive month the gauge has slowed, hitting its lowest since December 2021, according to data compiled by Bloomberg.